Back on March 16, 2020, U.S. airlines asked the government for a $50+ billion bailout relief package in order to avoid bankruptcies and other impacts the coronavirus has had on the industry. The US Government approved an approximate $54 billion to support air carriers. Of that amount, about $25B of the loans and grants are guaranteed for passenger airlines, and $4B targeted for cargo carriers. There is an additional $29B in grants targeted to paying employees. This piece of the bill has one key stipulation – job protection. Airlines accepting this portion of the package will not be allowed to layoff or furlough any workers until September 30th, 2020. At this point, it is anticipated the crisis will be winding down, and the recovery will be well underway. In addition, no stock buy backs will be allowed for one year after the loan portions have been paid back.
Ultimately, regardless of your view on government bailouts, this is good news for the travelers. The airlines act almost like a national utility. Their services are critical to allowing many other industries to conduct their business. In addition, this is fantastic new for the vacation traveler. They can now book with confidence knowing that their airline of choice will be flying.
As we all continue to navigate through the uncertain landscape, Fox World Travel is here to be your trusted travel partner. Feel free to call or email us with any questions you may have!
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